Pivot Trading- a new way of Trading

[Subhadip]

Subhadip,
What about derl please.
vishnu_1990v

Please give me some time, I am posting about dERL.

 

[Subhadip]

Hmm speaking about double the capital in 40 Trades thread and I remember something vaguely interacting then but I don't remember what you said to me
You must be having very strong memory

I will post some charts with those cross over in charts with some easy trades tomorrow..

 

[sangram1705]

How to use ERL in Trading:

1. Rejections
Let’s say that we are in a pre-existing Uptrend and we have a clear cut breakout above our Pivot High, we have our ERL. We know that once this breakout closes at a visual distance from the ERL our ERL will be activated / operational.
Now, if the price collapses and the Bar closes below our ERL, we call it a Rejection.
Hence, Rejection is nothing but when a Bar closes below ERL (in case of uptrend) or above ERL (in case of downtrend). And we reverse our position above or below the Rejection Bar High (Low) +- F as the trend may be.This becomes more Potent if the Rejection forms a Pivot above the ERL.(If Trade is not Hit with filter above / below the rejection bar that bar will become the pivot).

2. Failure
Failure is nothing but the bar that breaks the pivot and goes away at a good visual distance but eventually the same bar falls back and closes below the non-operational ERL line (body of pivot).


When we don’t look at the ERL?

1. The Pivot has to be from the same Trend for ERL
Assume we are in a downtrend, our SAR is at the latest Pivot High. Now, if the latest PH is broken we reverse our position to Long. That PH cannot be considered now for ERL in case of our new uptrend as it is from a Previous Trend. ERLs are early reversal signals and should be based on the price action in the current trend, not the previous one. Hence, in the new uptrend, wait for the price to form a new higher PL and then let it take out the previous Visual Pivot High at a visual distance for it to be considered as an ERL.

2. Ignore the ERL in Sideways Market

There may be many ERLs formed within the Sideways but we ignore them altogether. The ERL play will resume once the Sideways is taken out and Up / Down trend resumes.

The Visual Distance is just a bar closing over a potential ERL that is obvious Visually.............There is no percentage or mathematical calculation to it........Visually,a breakout bar over a potential ERL and a visual close outside of this potential line activates it.


The concept of ERL::

Dada,
A few doubts:

1) Are the following statements correct:
-->We go short below rejection bar low+F in uptrend
-->We go long above rejection bar high+F in downtrend
-->2nd image is for failure

2) couldnot understand the following:
"This becomes more Potent if the Rejection forms a Pivot above the ERL."
I mean, above statement is for uptrend or downtrend. Better if u can post a illustration.
3) Another thing couldnot understand:
(If Trade is not Hit with filter above / below the rejection bar that bar will become the pivot).
Thanks

 

[XRAY27]

Dear xray,
last one is still not active.

Thanks subhadip !!! Agg.pivot or P1 entry along with pure pivot are my entry points with in my method of trading...no Verl or Erl's...i found little complicated with saint sir post.s ,but now this is very much clear with your posts...:clapping:

 

[amandeep86]

Subhadip ,

Can we also use Failures(Cases where bar made a new high but closed below the possible ERL ,Forming a Hammer(In case of UPTrend) for similar entries as case of Rejection of ERL ,Although ERL was not activated as per the definition?

 

[Subhadip]

Subhadip ,

Can we also use Failures(Cases where bar made a new high but closed below the possible ERL ,Forming a Hammer(In case of UPTrend) for similar entries as case of Rejection of ERL ,Although ERL was not activated as per the definition?

Yes we can use Failures

 

[amandeep86]

Subhodip,

I have marked few trades based on ERL failures ,Please check which of following 6 Trades are correct.

if we make this is used as a trading setup ,will it be something counter trading trends which is against the Flow Principal.

 

[umeshmandal]

Subha, At what point in the move do we know that the previous HPH is now a VPH :
When a HPL is breached or when a LPH is formed !

Is it at this stage a VPH: ???

Or Now its a confirmed VPH :

First one is right,

First one is right,

Thanks for your reply Subhadip.

You have clarified that Image one is correct: a VPH is said to be formed when LPL is formed.

Sir, I have 2 questions :
01. In the Image 1 where you say that a VPH is formed when LPL is formed! Now what if the upmove after LPL creates a HPH again? So wont it be logical to say that VPH is said to have been formed only after a LPH is formed?

02.Is there anything about this happening after a minimum number of HPH already formed ? I mean to ask do we need minimum of 2 or more HPH and then a LPL or LPH to get a VPH?

Hopefully my query is clear!

 

[wisp]

Dear Subhadip,
awesome teachings on ERL, you have made things very clear :clap::clap::clap::hap2:

 

[Subhadip]

Dada,
A few doubts:

1) Are the following statements correct:
-->We go short below rejection bar low+F in uptrend
-->We go long above rejection bar high+F in downtrend
-->2nd image is for failure

2) couldnot understand the following:
"This becomes more Potent if the Rejection forms a Pivot above the ERL."
I mean, above statement is for uptrend or downtrend. Better if u can post a illustration.
3) Another thing couldnot understand:
(If Trade is not Hit with filter above / below the rejection bar that bar will become the pivot).
Thanks

I will not answer now. read it when ur mind is free from clutters, after that I will tell you again